100% Business Meals Deduction

The COVID-19 relief package includes a provision allowing companies to write off 100% of business dining expenses through 2022. What are some items to consider when deducting a business meal? 

The meal must meet the following requirements:

· The business owner or employee must be present

· The cost of the meal or beverages cannot be lavish or extravagant

· The meal must be with a business contact, like a customer, employee, or vendor

· The meal has an “ordinary and necessary” business purpose

Our recommendation is to write the business item discussed at the meal and the names of who participated directly on the receipt, then keep the paper receipt, use a receipt app or take photos of receipts and file away. If you use QuickBooks Online, you have the technology to upload receipts currently. Your tax preparer will not need the documentation, but you will need the receipts if you were ever audited. 

We personally are excited to take this opportunity. As soon as in-dining opens in Clark County and Portland, Blackbird Accounting will be taking our networking partners and potential or current clients to share a meal as much as possible. Whatever we can do to help the hurting local restaurants in our community. Do you have recommendations of local restaurants to visit?  Blackbird Accounting will continue to update on the COVID-19 relief package.